Background: Phytosterols are naturally occurring steroid alcohols with excellent nutritional values and wellness effects on lowering both the blood cholesterol and the ratio of the low-density to high-density lipoprotein bound cholesterol in serum. Scope and approach: Recently, fortification of foods with these valuable bioactives have gained much attention. But, the bioavailability of phytosterols is very low due to their water-insolubility and high melting point. Different nanocarriers can overcome these drawbacks of phytosterols and protect them against oxidative and detrimental agents. This paper reviews the state of the art of various nanodelivery systems (lipid-based, surfactant-based, biopolymer-based delivery systems and electrospinning/spraying) considering the most commonly methods used for their preparation, beneficial features and disadvantages and some recent studies reported for applying phytosterols as a core or stabilizing agent into various nanocarriers. Key findings and conclusions: Many studies have revealed the role of nanoencapsulation in improving the bioavailability of phytosterols. Also, the technological challenges and food safety of nanoencapsulated phytosterols have been investigated. In general, to apply these bioactive compounds into different food products and to prevent their drawbacks, nanocarriers have been proven to be a practical strategy in the food industry.